CHERUVATHUR FOUNDATION,KOCHI vs. ACIT, EXEMPTION CIRCLE, KOCHI
In the result, the appeal filed by the assessee stands partly allowed
ITA 1063/COCH/2024[2014-15]Status: DisposedITAT Cochin23 Jun 2025AY 2014-15
Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2014-15 Cheruvathur Foundation .......... Appellant Hig 5, Panampilly Nagar, Kochi 682036 [Pan: Aabtc0724E] Vs. Acit (Exemptions), Kochi .......... Respondent Appellant By: Shri Abraham Joseph Markos, Advocate Respondent By: Smt. Veni Raj, Cit-Dr Date Of Hearing: 20.05.2025 Date Of Pronouncement: 23.06.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeal)-4, Chennai, Dated 23.10.2024 For Assessment Year (Ay) 2014-15. 2. Brief Facts Of The Case Are That The Appellant Is A Charitable Trust Found With The Object Of Imparting Education. It Is Duly Registered U/S. 12A Of The Income Tax Act, 1961 (The Act). The Appellant Trust Filed Return Of Income For 2014-15 On 31.03.2015 Disclosing Nil Income After Claiming Exemption U/S. 11 Of The Act. In 2 Cheruvathur Foundation The Return Of Income The Appellant Claimed The Amount Spent On Acquisition Of Fixed Assets & Repayment Of Loans To Bank As Application Of Income. The Said Return Of Income Was Processed By The Cpc Vide Intimation Dated 16.03.2016 By Making Adjustment Of The Cost Of Fixed Assets Of Rs. 1,25,20.205/- & Repayment Of Loans Of Rs. 4,68,87,408/- By Not Allowing As Application Of Income. Being Aggrieved By The Said Intimation, An Application U/S. 154 Of The Act Was Filed Before The Cpc. The Intimation Was Amended By Allowing The Cost Of Asset As An Application Of Income & Confirmed The Adjustment Of Repayment Of Loan Of Rs. 4,68,87,408/- & Also Not Allowed Carry Forward Of Excess Amount Spent In Earlier Years.
For Appellant: Shri Abraham Joseph Markos, AdvocateFor Respondent: Smt. Veni Raj, CIT-DR
Section 11Section 12ASection 143(1)Section 154
5. The learned counsel for the assessee submitted that repayment of loan of Rs. 4,68,87,408/- clearly amounts to application of income relying on the judgement of the Hon'ble Apex Court in the case of CIT v. Rajasthan and Gujarati Charitable Foundation Civil
Appeal No. 5171/206. He further submitted that the CPC erred in not allowing
